FOMC Minutes

Meeting of Federal Open Market Committee April 30, 1968 MINUTES OF ACTIONS A meeting of the Federal Open Market Committee was held in the offices of the Board of Governors of the Federal Reserve System in Washington, D. C., on Tuesday, April 30, 1968, at 9:30 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Martin, Chairman Hayes, Vice Chairman Brimmer Daane Ellis Galusha Hickman Kimbrel Maisel Robertson Sherrill Messrs. Bopp, Clay, Coldwell, and Scanlon, Alternate Members of the Federal Open Market Committee Messrs. Heflin, Francis, and Swan, Presidents of the Federal Reserve Banks of Richmond, St. Louis, and San Francisco, respectively Mr. Holland, Secretary Mr. Sherman, Assistant Secretary Mr. Kenyon, Assistant Secretary Mr. Broida, Assistant Secretary Mr. Molony, Assistant Secretary Mr. Hackley, General Counsel Mr. Brill, Economist Messrs. Axilrod, Kareken, Link, Mann, Partee, Reynolds, and Taylor, Associate Economists Mr. Holmes, Manager, System Open Market Account Mr. Coombs, Special Manager, System Open Market Account 4/30/68 Mr. Fauver, Assistant to the Board of Governors Mr. Wernick, Associate Adviser, Division of Research and Statistics, Board of Governors Mr. Keir, Assistant Adviser, Division of Research and Statistics, Board of Governors Mr. Bernard, Special Assistant, Office of the Secretary, Board of Governors Miss Eaton, General Assistant, Office of the Secretary, Board of Governors Miss McWhirter, Analyst, Office of the Secretary, Board of Governors Messrs. Eisenmenger, Eastburn, Baughman, Andersen, Tow, Green, and Craven, Vice Presidents of the Federal Reserve Banks of Boston, Philadelphia, Chicago, St. Louis, Kansas City, Dallas, and San Francisco, respectively Mr. Snellings, Assistant Vice President Federal Reserve Bank of Richmond Mr. Cooper, Manager, Securities and Acceptance Departments, Federal Reserve Bank of New York By unanimous vote, the minutes of actions taken at the meetings of the Federal Open Market Committee held on March 14 and April 2, 1968, were approved. The memoranda of discussion for the meetings of the Federal Open Market Committee held on March 14 and April 2, 1968, were accepted. By unanimous vote, the action taken on April 11, 1968, under paragraph 3 of the authorization for System foreign currency operations, by the Subcommittee designated in paragraph 6 of the authorization, approving a purchase from the Netherlands Bank of $12.84 million -3 4/30/68 equivalent of Dutch guilders at a rate other than the prevailing market rate, was ratified. By unanimous vote, the System open market transactions in foreign currencies during the period April 2 through 29, 1968, were approved, ratified, and confirmed. By unanimous vote, paragraph IB(3) of the authorization for System foreign currency operations was amended, effective immediately, to read as follows: 1B(3). Sterling purchased on a covered or guaranteed basis in terms of the dollar, under agreement with the Bank of England, up to $250 million equivalent. By unanimous vote, renewal for a further period of three months of the drawing by the Bank of England maturing on May 21, 1968, was authorized. By unanimous vote, renewal for further periods of three months of the two System drawings on the Belgian National Bank maturing on May 14 and May 28, 1968, respectively, was authorized. By unanimous vote, the open market transactions in Government securities, agency obligations, and bankers' acceptances during the period April 2 through 29, 1968, were approved, ratified and confirmed. With Mr. Hickman dissenting, the Federal Reserve Bank of New York was authorized and directed, until otherwise directed by the Committee, to execute transactions in the System Account in accordance with the following current economic policy directive: 4/30/68 The information reviewed at this meeting indicates that over-all economic activity has expanded at a very rapid pace thus far in 1968, with prices rising substantially, and that prospects are for a continuing rapid advance in activity and persisting inflationary pressures in the period ahead. Since late fall, growth rates of bank credit, the money supply, and time and savings accounts at financial institutions have on balance moderated considerably. Market interest rates have risen in recent weeks, partly in reaction to the firming of monetary policy including the further increase in Federal Reserve discount rates. The U.S. foreign trade balance has worsened further, and the international payments position of the United In this States continues to be a matter of serious concern. situation, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to resistance of infla tionary pressures and attainment of reasonable equilibrium in the country's balance of payments. To implement this policy, while taking account of Treasury financing activity, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining the firmer conditions prevailing in the money market; provided, however, that operations shall be modified, to the extent permitted by Treasury financing, if bank credit appears to be deviating significantly from current projections. It was agreed that the next meeting of the Committee would be held on Tuesday, May 28, 1968, at 9:30 a.m. The meeting adjourned. Secretary

Federal Reserve (1968, April 29). FOMC Minutes. Fomc Minutes, Federal Reserve. https://whenthefedspeaks.com/doc/fomc_minutes_19680430

@misc{wtfs_fomc_minutes_19680430,
  author = {Federal Reserve},
  title = {FOMC Minutes},
  year = {1968},
  month = {Apr},
  howpublished = {Fomc Minutes, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/fomc_minutes_19680430},
  note = {Retrieved via When the Fed Speaks corpus}
}